To Please IMF, Argentina Closes Cryptocurrency Market Siege

To Please IMF, Argentina Closes Cryptocurrency Market Siege

Argentina pledges to exert pressure on the cryptocurrency market to please the IMF to which it is indebted. Argentina’s debt to the International Monetary Fund is estimated at $40 billion and has been the target of much international criticism of the country, which has one of the highest inflation rates in Latin America.

The local government seems to be solving this problem soon, and an agreement is being made with the international body.

That’s why negotiations took 18 months to reach a reasonable deadline for the country to get rid of its debts, and President Alberto Fernández sent this to Argentina’s National Congress last week. The expectation of approval of the package of measures is already starting to worry sectors in the country.

A package being reviewed at Argentina’s Congress could put pressure on cryptocurrencies to please the IMF

Argentina’s portal ámbito revealed what could be a coup against cryptocurrencies in the country, if the IMF package proposed by Argentina’s president is approved by the National Congress.

Accused by the current government of being the “agreement of the ex-president Maurício Macri” with the IMF, this debt of Argentina leaves even investigation. The then-Central Bank president even thought it better to buy Bitcoin, after receiving criticism in recent months.

Regardless, the country is racing against time to avoid a problem with the IMF and defer debt by 4 years. To that end, one of the commitments has been made to regulate and more closely monitor cryptocurrencies to prevent money laundering.

The only problem for President Alberto is that even his base is not convinced of the current agreement as a beneficial measure for the country, so it is not clear whether this agreement will be approved.

For supporters of the agreement’s approval, this means avoiding the immediate catastrophe of neighboring Brazil, which is already experiencing a crisis in its economy and lacks the means to pay its debt in the short term.

What if the Argentine Congress does not approve the package?

A relief for the local cryptocurrency sector could be that Argentina’s Congress will not vote on the package of measures, a situation that would not change anything for local businesses in the short term.

However, this means Argentina must raise $2.8 billion to send to the IMF by the end of this March, as the 2018 rules would apply.

If approved, in addition to potential pressure on the cryptocurrency market, Argentina will be given a deadline to pay the debt in 2026, giving some sectors freedom but hard pressure on others.

Source: Live Coins